Together for Global Risk Response
With increasing globalization, the world is going through dynamic changes. Globalization has led to multiple factors such as shifting demographics, rapidly accelerating technological changes, increased connectivity and a growing multiplicity of actors. Amid such a complex global mechanism, it is natural to expect economic uncertainties. Due to continuous changes in power structures, there are numerous risks posed to corporations, institutions and states alike. Frequent natural disasters are also hitting the largest economies in the form of epidemics, earthquakes and floods.
For an assessment of global risks, the World Economic Forum has constituted a ‘Risk Response Network’ platform. The latest example of Japan going through the aftermath of the world’s biggest earthquake in recent history is relevant. Japan has welcomed cooperation and innovative ideas from the international community and the Risk Response Network (RRN), as the country is in a reconstruction phase. Areas of cooperation involve sharing of knowledge and experience to reinforce the safety of nuclear power generation, reestablishing the supply chains and quality control for food distribution and safety methods. The ability of the RRN to assist in emergency response in real time, is a major need of disaster-hit regions.
The present increasingly interdependent economies cannot afford to adopt and ineffective risk response strategy. According to Kevin Steinberg, Head of the Risk Response Network, “The World Economic Forum’s new Risk Response Network is focused on enabling the global decision-makers to better understand, respond to, prepare for and capture opportunities related to the world’s most difficult, complex, and systemic risks.”
Importantly, the global economy is also facing major geopolitical risks with the shift of power to emerging economies. These emerging economies have different views of global and greater state intervention in the economy by developed and developing countries.
The Risk Response Network has duly highlighted these realities and proposed practical solutions for new relations between the diverse global economies. The WEF platform has provided opportunities to governments of medium-sized rising powers like Brazil, Indonesia and Turkey to redefine their roles on the regional and international stages. RRN has brought revolution for resourcerich African countries to benefit from new economic relationships. The network proposed modifications for the leadership role of the United States towards sustainability that allows for the sharing of more burdens of provision of global public goods.
Therefore, RRN has a major role in addressing the economic inequalities and failed global governance systems. It is an umbrella project to provide support designs to global leaders for better understanding and responding to risks.
The support structure of Risk Response Network is formed by the most relevant global decisionmakers, through a new and unique community of risk officers from top corporations, governments and global risk regulating bodies. In the context of Pakistan, the economic infrastructure of the country supported by the Trade Development Authority, Research Institutes like Pakistan Institute of Trade and Development and a number of private organizations, is working towards a coordinated global action to minimize the financial and political risks posed to the vibrant economy of the country. The 2011 RRN Report divided global risks into three categories of the relationship between illicit trade, crime, corruption and state fragility; a set of interconnected risks tied to water, food and energy; and risks related to global macroeconomic imbalances. By addressing these key risk areas with a collective global effort, emerging economies like Pakistan can set themselves on a sustained economic path economic operations than the industrialized states. Thus, in a vacuum of leadership there is increased potential for West-East tensions